PerkinElmer - Developing Products in China for China SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of PerkinElmer - Developing Products in China for China
To maximize their effectiveness, color cases should be printed in color.Sym-Bio, an entrepreneurial Chinese diagnostic company with a product line in infectious disease testing, has agreed to be acquired by PerkinElmer, an international corporation with businesses in neonatal testing, life science services, and environmental health. Sym-Bio wants to accelerate its growth and competitive position in China through this strategic move, and PerkinElmer seeks to broaden its access to the Chinese marketplace, leverage the cost advantages of operating in China, and tap into the talent pool of young Chinese scientists. Strategic and operational integration of Sym-Bio into PerkinElmer is explored through the lens of the founder and CEO of Sym-Bio and that of the acquiring company.
Authors :: Vicki L. Sato, Christoph Jaeker, Kareem Reda
Swot Analysis of "PerkinElmer - Developing Products in China for China" written by Vicki L. Sato, Christoph Jaeker, Kareem Reda includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Perkinelmer Sym facing as an external strategic factors. Some of the topics covered in PerkinElmer - Developing Products in China for China case study are - Strategic Management Strategies, Globalization, Research & development and Technology & Operations.
Some of the macro environment factors that can be used to understand the PerkinElmer - Developing Products in China for China casestudy better are - – challanges to central banks by blockchain based private currencies, increasing commodity prices, geopolitical disruptions, increasing government debt because of Covid-19 spendings, increasing energy prices, talent flight as more people leaving formal jobs, wage bills are increasing,
increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of PerkinElmer - Developing Products in China for China
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in PerkinElmer - Developing Products in China for China case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Perkinelmer Sym, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Perkinelmer Sym operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of PerkinElmer - Developing Products in China for China can be done for the following purposes –
1. Strategic planning using facts provided in PerkinElmer - Developing Products in China for China case study
2. Improving business portfolio management of Perkinelmer Sym
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Perkinelmer Sym
Strengths PerkinElmer - Developing Products in China for China | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Perkinelmer Sym in PerkinElmer - Developing Products in China for China Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the PerkinElmer - Developing Products in China for China Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Learning organization
- Perkinelmer Sym is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Perkinelmer Sym is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in PerkinElmer - Developing Products in China for China Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Perkinelmer Sym in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Perkinelmer Sym is one of the most innovative firm in sector. Manager in PerkinElmer - Developing Products in China for China Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Diverse revenue streams
– Perkinelmer Sym is present in almost all the verticals within the industry. This has provided firm in PerkinElmer - Developing Products in China for China case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Cross disciplinary teams
– Horizontal connected teams at the Perkinelmer Sym are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Perkinelmer Sym digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Perkinelmer Sym has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Successful track record of launching new products
– Perkinelmer Sym has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Perkinelmer Sym has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Analytics focus
– Perkinelmer Sym is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Vicki L. Sato, Christoph Jaeker, Kareem Reda can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Organizational Resilience of Perkinelmer Sym
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Perkinelmer Sym does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Strong track record of project management
– Perkinelmer Sym is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Ability to lead change in Technology & Operations field
– Perkinelmer Sym is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Perkinelmer Sym in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses PerkinElmer - Developing Products in China for China | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of PerkinElmer - Developing Products in China for China are -
Increasing silos among functional specialists
– The organizational structure of Perkinelmer Sym is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Perkinelmer Sym needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Perkinelmer Sym to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Perkinelmer Sym has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study PerkinElmer - Developing Products in China for China, it seems that the employees of Perkinelmer Sym don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Need for greater diversity
– Perkinelmer Sym has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Skills based hiring
– The stress on hiring functional specialists at Perkinelmer Sym has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Vicki L. Sato, Christoph Jaeker, Kareem Reda suggests that, Perkinelmer Sym is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
No frontier risks strategy
– After analyzing the HBR case study PerkinElmer - Developing Products in China for China, it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Low market penetration in new markets
– Outside its home market of Perkinelmer Sym, firm in the HBR case study PerkinElmer - Developing Products in China for China needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Perkinelmer Sym is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study PerkinElmer - Developing Products in China for China can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study PerkinElmer - Developing Products in China for China that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case PerkinElmer - Developing Products in China for China can leverage the sales team experience to cultivate customer relationships as Perkinelmer Sym is planning to shift buying processes online.
Capital Spending Reduction
– Even during the low interest decade, Perkinelmer Sym has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Opportunities PerkinElmer - Developing Products in China for China | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study PerkinElmer - Developing Products in China for China are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Perkinelmer Sym can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Perkinelmer Sym can use these opportunities to build new business models that can help the communities that Perkinelmer Sym operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Perkinelmer Sym can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Perkinelmer Sym is facing challenges because of the dominance of functional experts in the organization. PerkinElmer - Developing Products in China for China case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Buying journey improvements
– Perkinelmer Sym can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. PerkinElmer - Developing Products in China for China suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Leveraging digital technologies
– Perkinelmer Sym can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Building a culture of innovation
– managers at Perkinelmer Sym can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.
Low interest rates
– Even though inflation is raising its head in most developed economies, Perkinelmer Sym can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Learning at scale
– Online learning technologies has now opened space for Perkinelmer Sym to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Loyalty marketing
– Perkinelmer Sym has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Perkinelmer Sym can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, PerkinElmer - Developing Products in China for China, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Perkinelmer Sym in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Perkinelmer Sym can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats PerkinElmer - Developing Products in China for China External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study PerkinElmer - Developing Products in China for China are -
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Perkinelmer Sym business can come under increasing regulations regarding data privacy, data security, etc.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Perkinelmer Sym needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Perkinelmer Sym is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Perkinelmer Sym can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study PerkinElmer - Developing Products in China for China .
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Perkinelmer Sym can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology acceleration in Forth Industrial Revolution
– Perkinelmer Sym has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Perkinelmer Sym needs to keep up with the evolution of technology in the Technology & Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Perkinelmer Sym with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Environmental challenges
– Perkinelmer Sym needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Perkinelmer Sym can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Consumer confidence and its impact on Perkinelmer Sym demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Increasing wage structure of Perkinelmer Sym
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Perkinelmer Sym.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Perkinelmer Sym in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study PerkinElmer - Developing Products in China for China, Perkinelmer Sym may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Weighted SWOT Analysis of PerkinElmer - Developing Products in China for China Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study PerkinElmer - Developing Products in China for China needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study PerkinElmer - Developing Products in China for China is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study PerkinElmer - Developing Products in China for China is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of PerkinElmer - Developing Products in China for China is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Perkinelmer Sym needs to make to build a sustainable competitive advantage.
